I work for union pacific railroad and they use Vanguard . I am single and have not started investing in the fund. I am concerned about investing in a fund. The fund is taken out before taxes. So should I put in the maxium?

 

  • jebediabartlett 11:58 am on February 12, 2010

    If this is a 401 you’re talking about, be sure to put in AT LEAST what your employer " matches"..( it’s like a raise if you think about it!)…if your employer does not match, put in whatever you are comfortable with. Even just a little every month adds up…REALLY.
    As far as before tax or after ..don’t stress over that…whatever it is you can take out a small IRA each year in the opposite mode…if they are taking pre-tax, that amounts to a " traditional" IRA….so you would put something into a ROTH at the end of the year….BECAUSE it is great to have both styles of income later!
    If you have to put a little less in the 401 in order to save a little for the extra IRA…do it. BUT remember what that money is for at the end of the year. Good luck.
    P.S. If you are just a little unfamiliar with this kind of retirement saving for the future…here’s something that will give you an idea of what a little saving in a good fund can do for you.
    Go to http://www.finishrich.com/free_resources/lattecalculator.php
    Here’s what you put in…whatever you think you can save monthly…$50.? $80.? …. then put in about 10% – average for a decent fund…and your number of years ’til retirement…
    oooooh!..isn’t that a nice total ? just something to make those " golden years" just a little brighter!

  • samdesign78 11:58 am on February 12, 2010

    After tax..